McDonald’s notes sales growth in 2Q

NEW YORK — McDonald’s newly modernized stores and growth in delivery helped the world’s largest hamburger chain serve up a big increase in global sales at established locations.

The fast-food chain reported a 6.5% gain in sales at locations open at least 13 months. It marked the company’s biggest gain since the first quarter of 2012, when it posted a 7.3% increase. It was also McDonald’s 16th consecutive rise in comparable-store sales globally.

In the U.S., second-quarter comparable sales increased 5.7%. That gain reflected successful national and local deals, including the two for $5 Mix and Match incentive, McDonald’s newly remodeled stores, and strength in core menu items such as Big Macs and Quarter Pounders, the company said.

McDonald’s posted earnings of $1.52 billion, or $1.97 per share, for the three-month period that ended June 30. Earnings, adjusted for restructuring costs, were $2.05 per share, which was a penny shy of expectations, according to Zacks Investment Research.

Revenue was $5.34 billion, a bit better than what analysts expected.

Still, the sales boost in the U.S. was driven by people spending more per visit because of factors such as higher pricing. At the same time, McDonald’s has been struggling with ongoing declines in how frequently customers visit its stores, which is a key indicator of a restaurant chain’s popularity.

“Strong average check growth from both product mix and pricing continues to fuel our top line in the U.S.,” Kevin M. Ozan, McDonald’s chief financial officer, told analysts during a conference call Friday. “However, returning to guest-count growth in the U.S. remains a top priority in the street fight for market share.”

McDonald’s has been investing in a number of initiatives to help it stay on top of the highly competitive fast-food market. Last week, it announced that it was adding DoorDash as a new delivery partner, ending an exclusive agreement with Uber Eats.

McDelivery launched in the U.S. in 2017, and globally, it has grown to a $3 billion business for both McDonald’s and franchise restaurants, the company said.

The chain is also updating its locations with self-order kiosks to help increase convenience.

“By engaging our guests on their terms, whether it’s through delivery, an enhanced dining experience at one of our Experience of the Future restaurants or through our evolving digital offerings, we’re becoming a better McDonald’s,” Steve Easterbrook, CEO and president of McDonald’s, said in a statement.

McDonald’s Corp. is also under pressure to make its workplace safer for employees. It said in May that it was enhancing training and offering a new hotline for workers in response to mounting allegations of sexual harassment. That came as the labor group Fight for $15 filed 25 sexualharassment complaints against McDonald’s with the federal Equal Employment Opportunity Commission. The American Civil Liberties Union and the Time’s Up Legal Defense Fund are providing legal support.

Shares of McDonald’s Corp. rose $1.14 to close at $215.58 Friday.